Wu Xinhong, Founder, CEO, and Chairman of Meitu Company

AsianFin -- Meitu positions itself as an artificial intelligence (AI) application company, not a large model company, said Wu Xinhong, the founder, Chairman, and CEO of Meitu Company, a Hong Kong-listed firm that offers solutions of image, video and design

While the company has developed its own visual large model, it also benefits from the open-source ecosystem, integrating high-quality models like DeepSeek to enhance its products, he added.

Meitu's "model container" strategy allows it to balance proprietary and open-source models, optimizing performance and reducing costs.

The Chinese tech firm, known for its popular photo editing apps like Meitu Xiuxiu and BeautyPlus, has been navigating the rapidly evolving AI landscape, leveraging its strengths in engineering and user-centric innovation.

In 2024, Meitu allocated approximately 140 million yuan to visual large model training, a significant portion of its 910 million yuan R&D budget. However, Wu noted that costs are expected to decrease as the company refines its model deployment and leverages external advancements.

Meitu's overseas strategy has gained momentum, with international monthly active users reaching 94.51 million, a 21.7% year-over-year increase. The company's productivity tools, such as Meitu Design Studio, have seen remarkable growth, with annual revenue hitting 200 million yuan in 2024. Wu highlighted the success of the AI-powered "AI Outfit Change" feature in BeautyCam, which attracted over 20 million new overseas users with minimal investment.

Wu believes that Meitu's competitive advantage lies in its vast user base, technical expertise, and deep understanding of aesthetics and user behavior. With 266 million monthly active users globally, Meitu has a strong foundation for rapid product iteration and scaling. The company's engineering capabilities, supported by a team of over 1,200 engineers, enable it to bridge the gap between models and applications effectively.

While generative AI has lowered barriers to entry for application development, it has also intensified competition. Wu acknowledged the rise of small entrepreneurial teams in the imaging sector but sees this as a positive development that drives innovation. Meitu's focus remains on vertical scenarios, such as e-commerce and video production, where it can deliver highly specialized solutions.

Wu expressed optimism about Meitu's future, drawing parallels between the current AI revolution and the early days of mobile internet. He emphasized the importance of seizing opportunities in global markets and deepening localization efforts. Meitu aims to achieve significant growth in overseas revenue, potentially surpassing domestic contributions in the coming years.

In 2024, Meitu reported total revenue of 3.34 billion yuan, a 23.9% year-over-year jump, and adjusted net profit of 586 million yuan, up 59.2%. The imaging and design product business contributed 2.09 billion yuan, accounting for 62.4% of total revenue. Paid users reached 12.61 million, a 38.4% surge, reflecting the growing appeal of AI-driven products.